The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Bitcoin has recorded its first weekly decline since Donald Trump’s election win, reflecting the impact of the US Federal Reserve’s cautious monetary stance.
Key Highlights:
- Weekly Drop: Bitcoin fell over 7%, the largest weekly drop since September, trading around $94,344, nearly $14,000 below its December 17 record high.
- Broader Crypto Market: Other digital assets, including Ether and Dogecoin, saw sharper losses of about 10%.
- Fed's Influence: The Fed’s hawkish outlook tempered speculative enthusiasm, despite optimism over Trump’s pro-crypto stance and his support for a national bitcoin stockpile.
- ETF Outflows: A record outflow from US Bitcoin exchange-traded funds last week signals potential price pressure ahead.
Market Outlook:
- Support Level: Analysts highlight the $90,000 level as critical; a break below could trigger liquidations.
- Hedging Activity: Increased options market activity indicates downside protection, with buyers targeting $75,000-$80,000 strikes for early 2025.
- Volatility Ahead: Low liquidity and a significant options expiry on December 27 could add to year-end price swings.
- First-Quarter Forecast: Analysts remain optimistic, predicting a bullish trajectory into 2025.
Key Observations:
MicroStrategy’s ongoing Bitcoin purchases and whether the cryptocurrency maintains critical support levels will remain under close watch by traders and analysts.
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